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Why would artists favor free streaming?

Author

Listed:
  • Ramadan Aly-Tovar

    (University Paris 13 & LabEx ICCA)

  • Maya Bacache-Beauvallet

    (Institut Polytechnique de Paris)

  • Marc Bourreau

    (Institut Polytechnique de Paris)

  • Francois Moreau

    (University Paris 13 & LabEx ICCA)

Abstract

While streaming services are becoming the dominant way to consume recorded music, professional musicians remain divided in their opinion toward streaming, especially toward free (ad-supported) services that generate very low royalties. This paper is one of the first attempts to analyze empirically the drivers of the artists’ opinion on free streaming. Using survey data from more than 1100 French professional musicians, we emphasize that beyond their individual preferences, four main determinants affect the opinion of artists on free streaming: (1) Free streaming stands as a discovery tool that helps consumers to explore the music catalogue beyond stars and already well-known artists; (2) free streaming generates a positive externality on the live music market; (3) the contractual situation of the artist also matters, since the biggest recording companies obtain much more favorable conditions in revenue sharing from streaming services; (4) the opinion of artists is also shaped by the consumption habits of their fans.

Suggested Citation

  • Ramadan Aly-Tovar & Maya Bacache-Beauvallet & Marc Bourreau & Francois Moreau, 2020. "Why would artists favor free streaming?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(2), pages 255-280, June.
    • Handle: RePEc:kap:jculte:v:44:y:2020:i:2:d:10.1007_s10824-019-09358-z
    DOI: 10.1007/s10824-019-09358-z
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    Cited by:

    1. Mourelatos, Evangelos & Mourelatos, Haris, 2022. "Online video sharing and revenues during the Pandemic. Evidence from musical stream data," GLO Discussion Paper Series 1050 [pre.], Global Labor Organization (GLO).
    2. Christensen, Finn, 2022. "Streaming Stimulates the Live Concert Industry: Evidence from YouTube," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    3. Mourelatos, Evangelos & Mourelatos, Haris, 2022. "Online video sharing and revenues during the Pandemic. Evidence from musical stream data," GLO Discussion Paper Series 1050, Global Labor Organization (GLO).
    4. Ellen Loots & Diana Betzler & Trine Bille & Karol Jan Borowiecki & Boram Lee, 2022. "New forms of finance and funding in the cultural and creative industries. Introduction to the special issue," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(2), pages 205-230, June.

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